This bill clarifies federal rules about how states can finance their Medicaid programs, particularly regarding the use of local government funds. The legislation amends the Social Security Act to explicitly allow states to count public funds transferred from or certified by local political subdivisions, such as counties and cities, toward their required state contribution to Medicaid. The bill defines "public funds" broadly to include state and local tax revenues, fees, grants, bond proceeds, tobacco settlement funds, and hospital revenues, while specifying that federal funds cannot be counted as public matching funds unless specifically authorized by federal law. The changes affect state Medicaid administrators and local governments involved in financing Medicaid programs, as they clarify what types of funds can be used to meet state matching requirements. The bill does not specify any new funding amounts or implementation timeline beyond the amendments to existing law.
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